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  • Post Closing TB and Reversing

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    Charles Reginald K. Hwang
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    Post-closing trial balance is a schedule prepared at the end of the accounting period. It proves the equality of total debits and credits aer the closing process. E accounts are arranged as follows: Assets, Liabilities, and Owner's Equity.

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    Post Closing Tb and Reversing

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    Post-closing trial balance is a schedule prepared at the end of the accounting period. It proves the equality of total debits and credits aer the closing process. E accounts are arranged as follows: Assets, Liabilities, and Owner's Equity.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    90 views1 page

    Post Closing TB and Reversing

    Uploaded by

    Charles Reginald K. Hwang
    Post-closing trial balance is a schedule prepared at the end of the accounting period. It proves the equality of total debits and credits aer the closing process. E accounts are arranged as follows: Assets, Liabilities, and Owner's Equity.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Post-Closing Trial Balance

    • A schedule prepared at the end of the accounting period that proves the equality of total debits
    and credits aer the closing process.

    • It is oen described as a balance sheet in trial balance form.

    • It contains real or permanent accounts only.

    • e accounts are arranged as follows: Assets, Liabilities, and Owner’s Equity. e assets are
    arranged according to liquidity and the liabilities according to maturity.

    • Contra-accounts are presented as credits immediately next to the principal account.

    Reversing Entries

    • ese are journal entries which facilitate the recording of transactions in the usual manner.

    • ese entries are the exact reversal of some adjusting entries.

    • ese are optional entries.

    Adjusting Entries which may be Reversed

    1. All accrual-type adjusting entries

    2. Prepaid expenses under the expense method

    3. Unearned income under the income method


    ★
    All other adjusting entries are not reversed.

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